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Thursday, May 5, 2011

Israel Economy

Israel has a diversified, technologically advanced economy with substantial but decreasing government ownership and a strong high-tech sector. The major industrial sectors include high-technology electronic and biomedical equipment, metal products, processed foods, chemicals, and transport equipment. Israel possesses a substantial service sector and is one of the world's centers for diamond cutting and polishing. It also is a world leader in software development and, prior to the violence that began in September 2000, was a major tourist destination.

Israel's strong commitment to economic development and its talented work force led to economic growth rates during the nation's first 2 decades that frequently exceeded 10% annually. The years after the 1973 Yom Kippur War were a lost decade economically, as growth stalled and inflation reached triple-digit levels. The successful economic stabilization plan implemented in 1985 and the subsequent introduction of market-oriented structural reforms reinvigorated the economy and paved the way for rapid growth in the 1990s.

A wave of Jewish immigration beginning in 1989, predominantly from the countries of the former U.S.S.R., brought nearly a million new citizens to Israel. These new immigrants, many of them highly educated, now constitute some 13% of Israel's 7.5 million inhabitants. Their successful absorption into Israeli society and its labor force forms a remarkable chapter in Israeli history. The skills brought by the new immigrants and their added demand as consumers gave the Israeli economy a strong upward push and in the 1990s, they played a key role in the ongoing development of Israel's high-tech sector.

During the 1990s, progress in the Middle East peace process, beginning with the Madrid Conference of 1991, helped to reduce Israel's economic isolation from its neighbors and opened up new markets to Israeli exporters farther afield. The peace process stimulated an unprecedented inflow of foreign investment in Israel, and provided a substantial boost to economic growth in the region over the last decade. The onset of the intifada beginning at the end of September of 2000, the downturn in the high-tech sector and NASDAQ crisis, and the slowdown of the global economy have all significantly affected the Israeli economy. However, despite the conflicts in Gaza and Lebanon, the Israeli economy grew during 2006.

Israeli companies, particularly in the high-tech area, have in the past enjoyed considerable success raising money on Wall Street and other world financial markets; Israel has approximately the same number of companies listed on NASDAQ as the next three countries (Canada, Japan, and Ireland) combined. Israel's tech market is very developed, and in spite of the pause in the industry's growth, the high-tech sector is likely to be the major driver of the Israeli economy. Almost 45% of Israel's exports are high tech. Most leading players, including Intel, Motorola, IBM, and Cisco have a presence in Israel.

After growing by an exceptional 9.2% in 2000, growth was negative in 2001 and 2002, as a result of the security situation, global recession, and high-tech downturn. Growth returned in 2003, and as a result of the improvement in the security situation and the economic recovery plan undertaken by the Government of Israel, the Israeli economy grew by an average of more than 5% per year from 2004 to 2007. This was followed by growth of 4.2% in 2008. With the onset of the global financial crisis, the slowdown in the Israeli economy only began in the third quarter of 2008, but had largely recovered by the third quarter of 2009. Unemployment reached a high of 10.7% in 2003, a level not seen in 20 years, and declined consistently each year until 2008, when it reached 6.1%, the lowest level since 1995. The global economic slowdown raised the 2009 unemployment rate to 7.6%.

Trade of goods and services in Israel grew by 9.3% and 5.2%, respectively, in 2006 and 2007. Exports declined by a sharp 35.6% in the fourth quarter of 2008 and 28.6% in the first quarter of 2009. Diamond exports alone declined by more than 36% in the fourth quarter of 2008 compared with the same quarter the previous year. Agricultural exports, which increased by 44% in 2007, declined by almost 12% in the fourth quarter of 2008. However, recovery was well underway by early 2010, with exports posting 15.8% growth in the second quarter while imports were up 8.3%.

The general consensus among economists is that Israel entered the global economic crisis in relatively good shape. Because the Government of Israel maintained conservative policies during the crisis and avoided ambitious fiscal spending packages, the Israeli economy is expected to quickly emerge from a shallow recession and return to a path of growth, even if not at levels that were seen prior to the crisis.

The United States is Israel's largest single trading partner. In 2009, bilateral trade totaled $22.3 billion, a decline of about 20% over 2008, victim of the slowdown in global trade. The U.S. trade deficit with Israel was $11.1 billion in 2009. The principal goods exported from the U.S. include civilian aircraft parts, telecommunications equipment, semiconductors, civilian aircraft, electrical apparatus, and computer accessories. Israel's chief exports to the U.S. include diamonds, pharmaceutical preparations, telecommunications equipment, medicinal equipment, electrical apparatus, and cotton apparel. The two countries signed a free trade agreement (FTA) in 1985 that progressively eliminated tariffs on most goods traded between the two countries over the following 10 years. An agricultural trade accord signed in November 1996 addressed the remaining goods not covered in the FTA but has not entirely erased barriers to trade in the agricultural sector. Israel also has trade and cooperation agreements in place with the European Union, Canada, Mexico, and other countries.

Best prospect industry sectors in Israel for U.S. exporters are energy; defense; security and safety; health care; industrial chemicals; information and telecommunications; electronics; building and construction; travel and tourism; and education.

1Including Jerusalem2Israel proclaimed Jerusalem as its capital in 1950. The United States, like nearly all other countries, maintains its embassy in Tel Aviv.

Last updated on January 12, 2011

Economy - overview:Israel has a technologically advanced market economy. It depends on imports of crude oil, grains, raw materials, and military equipment. Despite limited natural resources, Israel has intensively developed its agricultural and industrial sectors over the past 20 years. Cut diamonds, high-technology equipment, and agricultural products (fruits and vegetables) are the leading exports. Israel usually posts sizable trade deficits, which are covered by large transfer payments from abroad and by foreign loans. Roughly half of the government's external debt is owed to the US, its major source of economic and military aid. Israel's GDP, after contracting slightly in 2001 and 2002 due to the Palestinian conflict and troubles in the high-technology sector, grew about 5% per year from 2004-07. The global financial crisis of 2008-09 spurred a brief recession in Israel, but the country entered the crisis with solid fundamentals - following years of prudent fiscal policy and a series of liberalizing reforms - and a resilient banking sector, and the economy has shown signs of an early recovery. Following GDP growth of 4% in 2008, Israel's GDP slipped to 0.2% in 2009, but reached 3.4% in 2010, as exports rebounded. The global economic downturn affected Israel's economy primarily through reduced demand for Israel's exports in the United States and EU, Israel's top trading partners. Exports account for about 25% of the country's GDP. The Israeli Government responded to the recession by implementing a modest fiscal stimulus package and an aggressive expansionary monetary policy - including cutting interest rates to record lows, purchasing government bonds, and intervening in the foreign currency market. The Bank of Israel began raising interest rates in the summer of 2009 when inflation rose above the upper end of the Bank's target and the economy began to show signs of recovery.

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Palestinian Identity Theft

Feature Video

Israel Should Make Peace With Whom?

Click HERE for more information

Description

Israel wants peace... and is willing to sacrifice a large portion of its homeland to end the conflict. Here are three clear points that highlight Israel's commitment to peace and shared Western values.

Favorite Quotes About Israel & Palestine

REMEMBER: ISRAEL IS BAD!
ITS EXISTENCE KEEPS REMINDING MUSLIMS WHAT A BUNCH OF LOSERS THEY ARE.

1) "Who can challenge the rights of the Jews to Palestine? Good Lord, historically, it is really your country." ~ Yusuf Diya al-Khalidi, Mayor of Jerusalem, in 1899. ~

2) "We Arabs, especially the educated among us, look with deepest sympathy on the Zionist movement.... We will wish the Jews a hearty welcome home... our two movements compliment one another." ~ Emir Faisal, a leader of the Arab world, in 1919. ~

3) Throughout his authorized biography (Alan Hart, Arafat: terrorist or peace maker) Arafat asserts at least a dozen times:
"The Palestinian people have no national identity. I, Yasser Arafat, man of destiny, will give them that identity through conflict with Israel."
~ Yasser Arafat ~

4) “We plan to eliminate the state of Israel and establish a purely Palestinian state. We will make life unbearable for Jews by psychological warfare and population explosion. . . . We Palestinians will take over everything, including all of Jerusalem.”
~ Yasser Arafat ~

5) "Peace for us means the destruction of Israel.
We are preparing for an all out war, a war which will last for generations.
~Yasser Arafat~

6) "The Palestinian people does not exist. The creation of a Palestinian state is only a means for continuing our struggle against the state of Israel. For our Arab unity. In reality today there is no difference between Jordanians, Palestinians, Syrians and Lebanese. Only for political and tactical reasons do we speak today about the existence of Palestinian people, since Arab national interest demand that we posit the existence of a distinct 'Palestinian people' to oppose Zionism".
~ Zahir Muhse'in, Member PLO Executive and the hoax of "Palestinian" identity - March 31, 1977 interview with the Amsterdam-based newspaper "Dagblad de Verdieping Trouw"~

7) "There is no such country as Palestine. 'Palestine' is a term the Zionists invented. There is no Palestine in the Bible. Our country was for centuries part of Syria. 'Palestine' is alien to us. It is the Zionists who introduced it".
- Auni Bey Abdul-Hadi, Syrian Arab leader to British
Peel Commission, 1937 -

9) "It is common knowledge that Palestine is nothing but Southern Syria".
- Representant of Saudi Arabia at the United Nations, 1956

10) Concerning the Holy Land, the chairman of the Syrian Delegation at the Paris Peace Conference in February 1919 stated: "The only Arab domination since the Conquest in 635 c.e. hardly lasted, as such, 22 years".

11) " There is no Palestinian nation! There is an Arab nation, but no Palestinian nation. This was invented by the colonial powers. When are the Palestinians mentioned in history? Never." ~ Azmi Bishara, former Arab Knesset member, on Israel television. ~

12) "There is not a solitary village throughout its whole extent (valley of Jezreel, Galilea); not for thirty miles in either direction... One may ride ten miles hereabouts and not see ten human beings. For the sort of solitude to make one dreary, come to Galilee... Nazareth is forlorn... Jericho lies a mouldering ruin... Bethlehem and Bethany, in their poverty and humiliation... untenanted by any living creature... A desolate country whose soil is rich enough, but is given over wholly to weeds... a silent, mournful expanse... a desolation... We never saw a human being on the whole route... Hardly a tree or shrub anywhere. Even the olive tree and the cactus, those fast friends of a worthless soil had almost deserted the country... Palestine sits in sackcloth and ashes... desolate and unlovely...".
- Mark Twain, "The Innocents Abroad", 1867 -

13) "In 1590 a 'simple English visitor' to Jerusalem wrote: 'Nothing there is to bescene but a little of the old walls, which is yet remayning and all the rest is grasse, mosse and weedes much like to a piece of rank or moist grounde'.".
- Gunner Edward Webbe, Palestine Exploration Fund,
Quarterly Statement, p. 86; de Haas, History, p. 338 -

14) "The land in Palestine is lacking in people to till its fertile soil".
- British archaeologist Thomas Shaw, mid-1700s -

15) "Palestine is a ruined and desolate land".
- Count Constantine François Volney, XVIII century French author and historian -

16) "The Arabs themselves cannot be considered but temporary residents. They pitched their tents in its grazing fields or built their places of refuge in its ruined cities. They created nothing in it. Since they were strangers to the land, they never became its masters. The desert wind that brought them hither could one day carry them away without their leaving behind them any sign of their passage through it".
- Comments by Christians concerning the Arabs in Palestine in the 1800s -

17) "Then we entered the hill district, and our path lay through the clattering bed of an ancient stream, whose brawling waters have rolled away into the past, along with the fierce and turbulent race who once inhabited these savage hills. There may have been cultivation here two thousand years ago. The mountains, or huge stony mounds environing this rough path, have level ridges all the way up to their summits; on these parallel ledges there is still some verdure and soil: when water flowed here, and the country was thronged with that extraordinary population, which, according to the Sacred Histories, was crowded into the region, these mountain steps may have been gardens and vineyards, such as we see now thriving along the hills of the Rhine. Now the district is quite deserted, and you ride among what seem to be so many petrified waterfalls. We saw no animals moving among the stony brakes; scarcely even a dozen little birds in the whole course of the ride".
- William Thackeray in "From Jaffa To Jerusalem", 1844 -

18) "The country is in a considerable degree empty of inhabitants and therefore its greatest need is of a body of population".
- James Finn, British Consul in 1857 -

29) "The area was underpopulated and remained economically stagnant until the arrival of the first Zionist pioneers in the 1880's, who came to rebuild the Jewish land. The country had remained "The Holy Land" in the religious and historic consciousness of mankind, which associated it with the Bible and the history of the Jewish people. Jewish development of the country also attracted large numbers of other immigrants - both Jewish and Arab. The road leading from Gaza to the north was only a summer track suitable for transport by camels and carts... Houses were all of mud. No windows were anywhere to be seen... The plows used were of wood... The yields were very poor... The sanitary conditions in the village [Yabna] were horrible... Schools did not exist... The rate of infant mortality was very high... The western part, toward the sea, was almost a desert... The villages in this area were few and thinly populated. Many ruins of villages were scattered over the area, as owing to the prevalence of malaria, many villages were deserted by their inhabitants".
- The report of the British Royal Commission, 1913 -

So the concepts "Palestinians" and "Palestinian People" and "Palestinian nation" and "Palestinian national self-determination" and "historical Palestine" are all hoaxes to facilitate the Arab terrorist destruction
of Israel. What does that tell us about what possible solutions to the conflict may work?..and what does it tell us about what will NOT work?

Favorite Quotes About Jordan IS Palestine

Here are several quotes from "officials" in the so-called Palestinian community. LET THEM SPEAK FOR THEMSELVES!!!!

1) "We are the Government of Palestine, the army of Palestine and the refugees of Palestine."
~ The Prime Minister of Jordan, Hazza' al-Majali, August 23,1959 ~

2) "Palestine and Transjordan are one, for Palestine is the coastline and Transjordan the hinterland of the same country."
~ King Abdullah, at the Meeting of the Arab League, Cairo, 12th April 1948 ~

3) "Let us not forget the East Bank of the (River) Jordan, where seventy per cent of the inhabitants belong to the Palestinian nation."
~ George Habash, leader of the PFLP section of the PLO, writing in the PLO publication Sha-un Falastinia, February 1970

4) "Palestine is Jordan and Jordan is Palestine; there is one people and one land, with one history and one and the same fate."
~ Prince Hassan, brother of King Hussein, addressing the Jordanian National Assembly, 2nd February 1970 ~

5) "There is no family on the East Bank of the river (Jordan) that does not have relatives on the West Bank ... no family in the west that does not have branches in the east."
~ King Hussein, addressing the Jordanian National Assembly, 2nd February 1972 ~

6) "We consider it necessary to clarify to one and all, in the Arab world and outside, that the PALESTINIAN PEOPLE with its nobility and conscience is to be found HERE on the EAST Bank The WEST Bank and the Gaza Strip. Its overwhelming majority is HERE and nowhere else."
~ King Hussein, quoted in An-Hahar, Beirut, 24th August 1972 ~

7) "The Palestinians here constitute not less than one half of the members of the armed forces. They and their brothers, the sons of Transjordan, constitute the members of one family who are equal in everything, in rights and duties." (Quoted by BBC Monitoring Service)
~ King Hussein, on Amman Radio, 3rd February 1973 ~

8) "There are, as well, links of geography and history, and a wide range of interests between the two Banks (of the River Jordan) which have grown stronger over the past twenty years. Let us not forget that el-Salt and Nablus were within the same district - el-Balka - during the Ottoman period, and that family and commercial ties bound the two cities together."
~ Hamdi Ken'an, former Mayor of Nablus, writing in the newspaper Al-Quds, 14th March 1973 ~

9) "The new Jordan, which emerged in 1949, was the creation of the Palestinians of the West Bank and their brothers in the East. While Israel was the negation of the Palestinian right of self-determination, unified Jordan was the expression of it."
~ Sherif Al-Hamid Sharaf, Representative of Jordan at the UN Security Council, 11th June 1973 ~

10) Past "President Bourguiba (of Tunisia) considers Jordan an artificial creation presented by Great Britain to King Abdullah. But he accepts Palestine and the Palestinians as an existing and primary fact since the days of the Pharaohs. Israel, too, he considers as a primary entity. However, Arab history makes no distinction between Jordanians, Syrians and Palestinians. Most of them hail from the same Arab race, which arrived in the region with the Arab Moslem conquest."
~ Editorial Comment in the Jordanian Armed Forces' weekly, Al-Aqsa, Amman, 11th July 1973 ~

11) "With all respect to King Hussein, I suggest that the Emirate of Transjordan was created from oil cloth by Great Britain, which for this purpose cut up ancient Palestine. To this desert territory to the bast of the Jordan (River)., it gave the name Transjordan. But there is nothing in history which carries this name. While since our earliest time there was Palestine and Palestinians. I maintain that the matter of Transjordan is an artificial one, and that Palestine is the basic problem. King Hussein should submit to the wishes of the people, in accordance with the principles of democracy and self-determination, so as-to avoid the fate of his grandfather, Abdullah, or of his cousin, Feisal, both of whom were assassinated."
~ Past President Bourguiba of Tunisia, in a public statement, July 1973 ~

12) "The Palestinians and the Jordanians have created on this soil since 1948 one family - all of whose children have equal rights and obligations."
~ King Hussein, addressing an American Delegation, 19th February 1975 ~

13) "How much better off Hussein would be if he had been induced to abandon his pose as a benevolent 'host' to 'refugees' and to affirm the fact that Jordan is the Palestinian Arab nation-state, just as Israel is the Palestinian Jewish nation-state."
~ Editorial Comment in the publication The Economist of 19th July 1975 ~

14) "Palestine and Jordan were both (by then) under British Mandate, but as my grandfather pointed out in his memoirs, they were hardly separate countries. Transjordan being to the east of the River Jordan, it formed in a sense, the interior of Palestine."
~ King Hussein, writing in his Memoirs ~

15) "Those fishing in troubled waters will not succeed in dividing our people, which extends to both sides of the (River) Jordan, in spite of the artificial boundaries established by the Colonial Office and Winston Churchill half a century ago."
~ Yassir Arafat, in a statement to Eric Roleau ~

16) "Palestinian Arabs hold seventy-five per cent of all government jobs in Jordan."
~ The Sunday newspaper The Observer of 2nd March 1976 ~

17) "Palestinian Arabs control over seventy per cent of Jordan's economy."
~ The Egyptian newspaper Al Ahram of 5th March 1976 ~

18) "There should be a kind of linkage because Jordanians and Palestinians are considered by the PLO as one people."
~ Farouk Kadoumi, head of the PLO Political Department, quoted in Newsweek, 14th March 1977 ~

19) "Along these lines, the West German Der Spiegel magazine this month cited Dr George Habash, leader of one of the Palestinian organizations, as saying that 70 per cent of Jordan's population are Palestinians and that the power in Jordan should be seized." (Translated by BBC Monitoring Service)
~ From a commentary which was broadcast by Radio Amman, 30th June 1980 ~

20) "Jordan is not just another Arab state with regard to Palestine but, rather, Jordan is Palestine and Palestine is Jordan in terms of territory, national identity, sufferings, hopes and aspirations, both day and night. Though we are all Arabs and our point of departure is that we are all members of the same people, the Palestinian-Jordanian nation is one and unique, and different from those of the other Arab states."
~ Marwan al Hamoud, member of the Jordanian National Consultative Council and former Minister of Agriculture, quoted by Al Rai, Amman, 24th September 1980 ~

21) "The potential weak spot in Jordan is that most of the population are not, strictly speaking, Jordanian at all, but Palestinian. An estimated 60 per cent of the country's 2,500,000 people are Palestinians ... Most of these hold Jordanian passports, and many are integrated into Jordanian society."
~ Richard Owen, in an article published in The Times, 14th November 1980 ~

22) "There is no moral justification for a second Palestine."
~ The Freeman Center (September 3, 1993) ~